South Africa 40 Cash Index: waiting for directional break
The SA40 Cash Index continues trade within a short term rangebound environment
South Africa 40 Cash Index
The South Africa 40 Cash Index has continued to trade within the short-term range highlighted in our previous note. The levels of which are considered between 71125 (support) and 72370 (resistance).
The long-term trend is also considered sideways as the index continues to whipsaw back and forth through the 200-day simple moving average (200MA) (blue line).
For a new directional commitment, we are waiting for a near term breakout.
For short entry, traders might prefer to see bearish confirmation with a close below the 71125-support level, before targeting a move back towards 69760 and 68500 levels respectively. In this scenario, a close above 72370 might be used as a stop loss indication for the trade.
For long entry, traders might prefer to see a close above the 72370-resistance level before targeting a move back towards the 74180 level. In this scenario, a close below the 71125 level might be used as a stop loss indication.
South Africa 40 Cash Index (Previous 18 July 2023)
The South Africa 40 Cash Index is currently finding resistance at the 72370 level whilst in overbought territory. The longer-term trend for the index is considered sideways at present.
Traders looking for short entry might prefer to see bearish confirmation with a close below the 71125-support level, accompanied by a move out of overbought territory, before targeting a move back towards 69760 and 68500 respectively. In this scenario, a close above 72370 might be used as a stop loss indication for the trade.
For long entry traders might prefer to see a close above the 72370-resistance level before targeting a move back towards the 74180 level. In this scenario, a close below the 71125 level might be used as a stop loss indication.
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